Tuesday, February 17, 2015

Credit Unions: Membership Has its Privileges



Credit Unions are no longer the best kept secret of the financial world. According to the Credit Union National Association (CUNA), as of mid-2014:
  • Credit union memberships total 100.1 million and assets exceed $1,125 billion.
  • Credit union savings stand at $961 billion, while loans total $689 billion.
  • There are 6,671 credit unions. Some 4,027 are federally chartered, and 2,644 are chartered under laws of various states and Puerto Rico.
  • Credit union memberships are now growing at more than two times the rate of U.S. population growth.
In California, there are 377 chartered credit unions, with a combined total of nearly 10 million members. Basically, one-fourth of the state population belongs to a credit union. Nationally, the credit union movement has continued on a meteoric rise for several decades. In 1970, 23 million Americans belonged to a CU. By 2000, that number soared to 80 million. Today, there are over 100 million credit union members in the U.S. 

In 2014, credit union members throughout the U.S. reaped some $7.3 billion in financial benefits. That’s an average of $140 per member household according to Credit Union National Association’s economics and statistics department. 

Why are credit unions consistently biting into the banks’ market share? 

Credit unions save members money by charging lower interest rates on loans and paying higher interest or dividends on deposit accounts and investments. They also charge fewer and lower fees. So the more you use our credit union, the more you save … and the more you earn. 

Consider this: Financing a $20,000 new car for 48 months at AltaOne Federal Credit Union at our special promo rate would likely save you up to $300 per year or more over a major national banks. That is a savings of $1,200-plus over the span of the four-year loan.

Across the board, you will see the same kind of rate advantages on loans and deposits with AltaOne and other credit unions. Even though the vast majority of credit unions cannot match the marketing power of national banks, consumers have been attracted to CUs like bears to honey, mostly due to the sizeable membership benefits. In addition to the rate advantages, credit unions traditionally charge low or no service fees compared with banks. And now that credit unions such as AltaOne have greatly enhanced their services such as online banking and mobile apps, it is really a no-brainer when it comes to choice.

The bottom line – AltaOne exists for its members. We do not answer to stockholders. We are a not-for-profit organization and our vision is to be the community’s choice for their financial services throughout all stages of life.

0 comments:

Post a Comment